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Patient Safety Technologies Reports Third Quarter 2011 Results
Date:11/15/2011

sh equivalents$

4,957,495$

1,896,034Restricted cash-223,630Accounts receivable1,043,093772,381Inventories, net1,677,1001,110,832Prepaid expenses54,430104,628Total current assets7,732,1184,107,505Property and equipment, net1,111,697979,833Goodwill1,832,0271,832,027Patents, net2,545,3772,789,083Other assets34,23339,038Total assets$

13,255,452$

9,747,486Liabilities and Stockholders' EquityCurrent liabilitiesAccounts payable$

1,704,705$

2,605,669Accrued liabilities435,978991,682Deferred revenue330,3091,477,720Warrant derivative liability463,838942,472Total current liabilities2,934,8306,017,543Commitments and contingenciesStockholders' equity Total stockholders' equity10,320,6223,729,943Total liabilities and stockholders' equity$

13,255,452$

9,747,486PATIENT SAFETY TECHNOLOGIES, INC.Condensed Consolidated Statements of Operations(Unaudited)Three Months EndedNine Months EndedSeptember 30,September 30,2011201020112010Revenues$

2,186,220$

4,122,560$

6,725,646$

10,252,897Cost of revenue1,190,8791,950,5733,528,1104,829,821Gross profit995,3412,171,9873,197,5365,423,076Operating expenses:Research and development1,46035,24655,220166,548Sales and marketing716,491518,5702,049,9432,341,132General and administrative806,544693,2352,864,0244,849,573Total operating expenses1,524,4951,247,0514,969,1877,357,253Operating (loss) income(529,154

)924,936(1,771,651

)(1,934,177

)Other income (expense)Interest income (expense)3473,598(3,632

)(5,062

)Gain on change in fair value of warrant derivative liability303,22215,631527,8442,685,579Other income--227,617433,958Total other income303,56919,229751,8293,114,475(Loss) income before income taxes(225,585

)944,165(1,019,822

)1,180,298Income tax (benefit) provision(2,543

)32,573(6,316

)139,862Net (loss) income(228,128

)976,738(1,026,138

)1,320,160Preferred dividends(125,498

)(14,682'/>"/>

SOURCE Patient Safety Technologies, Inc.
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